08
Jun
Is the BOJ pivot enough to boost the yen?
Likely economic slowdown in Q2 and Q3. Consumer confidence subdued. Return of inflation. BoJ pivot anticipated. Rate market tensions. Easing pressure on the yen. Nikkei consolidation.
Key points
- Strengthening economic momentum in Q1
- An uncertain Q2 caught between energy shock and wage surge
- Mixed indicators at the heart of Q2 and Q3 tensions
- Household confidence dented by inflation
- Return of inflationary pressures
- The BoJ up against the wall of 160 JPY/USD
- The yield curve under pressure from forced monetary tightening
- A 0.25% hike will not be enough to boost the yen
- The BoJ’s monetary pivot will weigh on the Nikkei
